When does it make sense to outsource your payroll?
Here’s a quick look at the main benefits that businesses gain by turning to payroll service providers.
Confidence - A good payroll service provider will know all the ins and outs of payroll-related legislation and IRD guidelines. They’ll keep up to date on the ever-changing tax regulations so you don’t have to. Letting experts deal with your payroll ensures that regulations are adhered to and filing deadlines are met. To achieve the same level of understanding in your employees will take a considerable investment from you in time, effort and cold hard dollars.
Affordable - Big corporations can afford payroll departments. For most businesses, however, running payroll in-house is a money burner. If your business has fewer than 20 employees, there’s a very good chance that you can save money by outsourcing your payroll. Do the maths. Reduce your ‘hidden’ costs of running payroll internally—software, updates, training, cheques, printing, etc. Figure out how many hours you and your employees are devoting to payroll-related activities – including processing, filing returns, answering employee queries and in interpreting employment law. Then compare this to a payroll-service provider like Smart. You’ll probably be surprised by the result.
Efficient - Payroll management is time-consuming. With this burden lifted off your shoulders, you and your employees can focus on doing more productive things, and you may even be able to trim your office staff size. And you won’t lack coverage when your payroll person takes annual or sick leave.
Worry Free - Payroll mistakes can be painful, angering employees and — more ominously — the IRD. A good payroll service provider is less likely to make a serious error than you or your in-house staff. If a big mistake is made, you can seek financial restitution from the provider — something you can’t do with your own employees. There’s a lot to be said for the peace of mind that outsourced payroll services can bring to a business owner or manager. No headaches, no hassles: You’re left to focus on running a profitable business.
Secure & Private- It can be embarrassing and detrimental to morale if the wrong eyes fall on the wrong payroll information. By outsourcing your payroll, sensitive and confidential employee and payroll data is calculated and kept off-site, so there’s no chance of a breach in confidentiality. By using an outsourced payroll service, you can be sure that your data is stored in a secure environment and is backed up off-site removing your risk of hardware or software failure.
Trust - Getting payroll done on time isn’t a luxury; it’s an expected part of running your business. If payrolls are delayed or mishandled, it’s the payroll service provider’s responsibility to fix things. If the provider can’t (or won’t) remedy the situation to your satisfaction, you can switch to another service provider in seven days. Try firing, hiring and training an in-house payroll staff in anything less than several weeks.
The choice of whether you outsource your payroll is a crucial decision. Click here to find out how Smart can help with your payroll
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